LAS VEGAS-Chadmoore Wireless Group Inc. signed a letter of intent with Foothill Capital Corp., an asset-based lender and wholly owned subsidiary of Norwest Corp., that calls for Foothill to provide $10 million of secured debt financing to Chadmoore.
The financing, which remains subject to certain contingencies, will be in the form of a $5 million term loan and $5 million revolving credit facility, said the specialized mobile radio services provider.
Chadmoore also entered into a letter of intent in early March with Recovery Equity Partners II L.P. The agreement called for Recovery to invest up to $10 million of equity capital in Chadmoore, contingent upon the company securing $10 million of debt financing.
Recovery said the Foothill financing would satisfy that contingency if the transaction is completed as it is proposed.
“This financing with Foothill should complete our long-term capitalization effort for funding full-scale rollout of our commercial SMR service in all 168 of our markets,” said Robert W. Moore, president and chief executive officer of Chadmoore.
